Partner Paying Off My Mortgage - What am I asking for?

pimento

My partner who recently moved in with me has (at my suggestion) decided to pay off my mortgage in return for a share in my house.

I want to find a solicitor who can do the needful and write (or in my case, re-write) wills for us both.

What is what we're doing called?

Will there be any tax to pay?

Is there anything else I need to consider?

We're not married.

Thank you.

gettingtheresometime

pimento wrote: »

My partner who recently moved in with me has (at my suggestion) decided to pay off my mortgage in return for a share in my house.

I want to find a solicitor who can do the needful and write (or in my case, re-write) wills for us both.

What is what we're doing called?

Will there be any tax to pay?

Is there anything else I need to consider?

We're not married.

Thank you.

Not being contentious but if I was to pay off someone's mortgage, thus buying a share of the property, I'd want it in black & white that I owned that share now....after all wills can be changed without anyone's knowledge (not say you would though!)

pimento

Which is why we'll be using a conveyancing solicitor. What I was asking was what do I tell the solicitor we want done? Is there a name for what we want?

TrickyDicky101

Transfer of equity. Depending on the amount involved it *could* require SDLT to be paid. No CGT as this is your private residence. You need to decide what proportion of the house your partner will own and then how your ownership will be reflected (eg Joint Tenants or Tenants in Common).

pimento

Thanks Dicky. Will we have any stamp duty to pay?

AdrianC

pimento wrote: »

Which is why we'll be using a conveyancing solicitor. What I was asking was what do I tell the solicitor we want done? Is there a name for what we want?

You could start with "My partner wants to pay off my mortgage, in exchange for a share of the house".

There are no "magic words" that will miraculously mean a different tax regime applies. Solicitors are, generally speaking, intelligent people - and it's generally wise not to hire the odd exception to that.

getmore4less

How much are you talking about?

pimento

getmore4less wrote: »

How much are you talking about?

House worth approx £450k. Mortgage of £45k.

pimento

AdrianC wrote: »

You could start with "My partner wants to pay off my mortgage, in exchange for a share of the house".

There are no "magic words" that will miraculously mean a different tax regime applies. Solicitors are, generally speaking, intelligent people - and it's generally wise not to hire the odd exception to that.

I wasn't being funny and I'm not trying to avoid tax. I've only ever bought two houses in my life and the most recent one was nearly 20 years ago. I just wanted to know what we should be budgeting for.

How do I know in advance if the solicitor I hire is an exception?

AdrianC

pimento wrote: »

How do I know in advance if the solicitor I hire is an exception?

Personal recommendations are a good start.

getmore4less

pimento wrote: »

House worth approx £450k. Mortgage of £45k.

No stamp duty on the £45k(assume he does not have another place).

if that's it then a 10% share nice round number.


if you want to keep a fixed share then don't forget that refurb/improvement costs should be split 90:10 as well.